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RIM's Profits Rise in Q4

Canadian handheld maker BlackBerry has just reported a booming profit for the fourth quarter of its fiscal year 2007, thanks to the success of its new Pearl consumer phone, but says that the Securities and Exchange Commission (SEC) has formalized its probe into its stock options problems. (See RIM Restates, Balsillie to Vacate Chair.)

The maker of the BlackBerry wireless email device reported income of $187.9 million, or 99 cents a share, in the three months ended March 3, up from $18.4 million a year ago. Revenue for the fourth quarter was $930.4 million, up 66 percent from the same quarter last year. Revenue for the fiscal year was $3 billion, up 47 percent from last year. Analysts were expecting earnings of 99 cents a share on revenue of $935.35 million, according to Thomson Financial .

The company stressed in its earnings release that the results are preliminary, pending a restatement related to an internal investigation of RIM's stock option grants in previous years.

RIM says it shipped around 6.4 million devices during fiscal 2007. Over a million new BlackBerry subscribers were added in the fourth quarter. Handhelds accounted for approximately 73 percent of its revenue in the quarter.

We'll have updates after RIM's conference call tonight.

— Dan Jones, Site Editor, Unstrung

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